Report
EUR 9.38 For Business Accounts Only

OGDC: Investment case updated, BUY!

  • We update our investment case on OGDC post 1Q results and maintain our BUY stance with a Jun’19TP of PkR180/sh.
  • Commissioning of LPG processing facility at Nashpa and approval from the GOP to sell gas from Jhal-Magsi to 3rd party operators, are likely to support profitability in the short-to-medium run.
  • A major trigger to profitability is the commissioning of, i) 106MMCFD of gas and 200bpd of oil unconnected to the system, and ii) FY18 discoveries cumulating into 48MMCFD of gas and 800bpd of oil.
  • The company is perfectly placed to benefit from higher concessions offered by the Government under PP12 on new blocks in frontier regions (~US$2/mmbtu), the bidding of which is likely to begin soon.
Underlying
Oil & Gas Development Co Ltd GDR (REG S)

Provider
AKD Securities Limited
AKD Securities Limited

AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.

AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.

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